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An insurance company borrows $100,000,000 at 12% annual simple interest. How much interest do they pay for the period from Feb 14 to March 14
An insurance company borrows $100,000,000 at 12% annual simple interest. How much interest do they pay for the period from Feb 14 to March 14 2020 (a leap year) for each of the following daycount conventions:
Daycount convention is 30/360
Daycount convention is ACT/360.
Daycount convention is ACT/ACT.
Also what is the effective annual interest rate in this question is it 12%?
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